YOUNG drivers are being encouraged to watch out for fake car insurance deals being sold online by fraudsters known as ‘Ghost Brokers’.

New figures released by the Insurance Fraud Bureau (IFB) show the consumer con has grown by over 50 per cent in the past two years. Ghost Brokers are increasingly advertising fake deals on popular social media sites.

Ghost Brokers are fraudsters pretending to be real insurance brokers. They often promote their bogus deals through social media and sometimes on fake insurance company websites. They then encourage communications through encrypted messaging software like WhatsApp to keep illegal dealings in private.

The fraudsters exploit the high costs young drivers face, along with their lack of experience when it comes to buying insurance, with promotions that feel irresistible.

This involves marketing themselves towards young social media users, promising to offer the lowest rate on the market and offer up-front quotes, despite the fact insurance is meant to be priced based on the risk of the individual.

The policies are taken out using stolen details which belong to people who are cheaper to insure, which are then sold on at a reduced rate, or they may simply be a photoshopped piece of paper; in both instances, the policy is invalid and the victim is driving uninsured.

Ursula Jallow, director at the IFB, said: “New drivers are caught out by Ghost Brokers because they face higher premiums and have had less experience in purchasing insurance policies for themselves, which unfortunately means they are more likely to be attracted to car insurance deals, that are too good to be true.

“The impact is devastating. We’ve seen victims lose thousands of pounds, have their identities stolen, their confidence and self-esteem shattered, and in some cases, they have even had their car seized for driving uninsured."